Chapter 1710： Big bosses' scruples

Yang Cheng laughed suddenly and pointed out, "Ms. Burns, have you forgotten that you also have shares in Beihai Petroleum?"

Burns froze for a moment, as if he was pinned by the time immobilizer, then smiled bitterly, "If you don't remind me, you will forget it~"

Yang Cheng stretched out her hand, "So, do you still persuade me to give up entering the Permian?"

"Although North Sea Petroleum also has my interests, I still want to remind you to make a good cash reserve, if you really decide to enter the Permian Basin."

This is a kind reminder. Yang Cheng understands that due to the current surplus of crude oil and the low oil prices, super giants such as ExonMobil and Chevron with large amounts of capital can still rely on the profits of their refining products to ease the production sector. The impact of reduced cash flow, but independent oil companies do not have strong capital reserves. As a result, many small companies are being snapped up by super giants that expand their operations in the Permian Basin.

This is a real problem in the Permian.

But cash has never been a concern for Beihai Petroleum. Yang Cheng asked, "Ms. Burns, I think your interest in Beihai Petroleum is far greater than that of ExxonMobil, right?"

Burns wondered what he meant, "What do you want to say?"

"Suggest me a target that can be acquired?"

Burns flatly refused, "No~jason, are you asking me to give up professional ethics?"

"Of course not, Ms. Burns, you are misunderstood. I didn't mean to **** prey from ExonMobil. All I need is a potential target, an object that can be acquired. This is all public information and there is no problem of leakage. , It just saves the investigation time."

Sometimes that's the way it is, saying a sentence in a different way can produce different meanings.

In this way, Burns’s resistance is not so strong. “There is indeed a good target. Endeavour Energy, headquartered in Midland, owns 350,000 acres of land in the Midland Basin, but the price is a bit expensive. , The current estimated asset price is as high as 6.5 billion US dollars."

Yang Cheng was taken aback, "So expensive? It's not a premium yet!"

Burns spread his hands like Yang Cheng, "This is what I just said, small and medium companies did not have the soil for survival in the Permian."

Thinking about the land that Uncle Tan bought for $12 million, I instantly felt that it was no different from cabbage.

I thought the same when I bought a bag, and then I was sprayed into a dog.

"I know, I will focus on following up this company."

The next day, Abramovich and Conrad flew to New York less than an hour before and after, and then rushed to the New Times Building to meet Yang Cheng without stopping.

Fortunately, they all have private jets. They slept beautifully in the sky, and they all looked pretty good.

"Jason, I declined the appointment with the deputy general manager of Se Lie~"

Conrad immediately said, "I have given up attending the business summit."

Yang Cheng's face turned black, "Don't talk, one of you is picking up girls in Australia, and the other is studying immigration in Israel. Do you really think I live in the last century?"

These two thick-faced guys didn't feel ashamed after being exposed, but licked their faces and said, "Anyway, we will come over from a long distance. We are sincere enough. Come on, what's the matter?"

Yang Cheng cleared his throat, "Ahem~ I think North Sea Oil should enter the Permian Basin~"

As a world-renowned large-scale oil field, how could Conrad and Abramovich, both energy tycoons, not know?

But they were not in a hurry to express their opinions, and after looking at each other, they fell silent.

Yang Cheng was not in a hurry, and waited patiently. I don't know how long it took before Conrad said, "Jason, is it a bit late to enter the Permian now?"

This is exactly the same as what Burns said~

"Is it late? I think it's just right. Let's grab a piece of cake and eat it first while the super giant company has not completed the integration. It's not too late~"

"Have you calculated the investment budget?" Abu asked~

"10 billion, at least!"

Conrad agreed, "There must be so many."

“I’m afraid it’s more than that~ I met with Ms. Burns yesterday, and she provided us with an acquisition target-Endeavour Energy. The current asset estimate has reached 6.5 billion. Counting the premium, it is estimated that there is no 8 billion that cannot be sold~"

Abu waved his hand, "Without considering the acquisition target, have you ever thought about the future development of the oil page industry? So far, the oil page industry has not really generated profits~"

Yang Cheng nodded affirmatively, "Of course I have considered that, first of all, the problem for shale oil prospectors and producers is that they failed to structurally reduce the break-even price. Many people say that the cost of shale oil is low, which is related to labor and service costs. The periodicity and temporary decline are related.

The market downturn has led to a decline in the prices of equipment and drilling rigs, completion services, fracturing sand and other oilfield services. However, as activities rebound, these costs will rise again. Oilfield service companies will demand higher prices, and labor shortages will increase wages, etc. Wait.

Therefore, as the price of crude oil rises, the breakeven price will also rise. "

Hearing Yang Cheng’s professional analysis Conrad and Abramovich were relieved. They were afraid that Yang Cheng was impulsive. After all, after working together for so long, it would not be worth it if the cooperation broke down because of his will. of.

But Conrad asked, "If you know, why venture in?"

Yang Cheng’s answer was, “Don’t forget, our real goal is to secure enough fuel reserves for Delta Air Lines. Next, we will promote our fuel products throughout the SkyTeam alliance and the added value of fuel. It is far more valuable than the direct extraction of fuel oil."

This is not a problem, Abu agreed, "Indeed, we don't need to be swayed by the buyer's attitude."

Yang Cheng broke another news, "Delta Air Lines recently prepared to acquire the Philadelphia Oil Refinery, which is the top ten oil refinery in the United States. The Permian Basin has abundant transportation pipelines, and it is a bit farther to reach Philadelphia. It can be achieved, but if it is not possible, shale oil can be purchased from the Beacon Oilfield and transported to Philadelphia for refined oil.

At that time, the North Sea Petroleum refinery, one south and one north, is enough to guarantee our production capacity and oil output. Even if the price can only be maintained at around US$50 in the next few years, as long as the extraction volume goes up, there must be a profit. Delta Air Lines and alliance members are responsible for paying the bill, it's just a matter of earning more and less.

Moreover, the oil price slump cannot last forever. The major oil giants will never allow their own interests to continue to suffer. As long as the price of crude oil returns to more than 100 US dollars, I don't need to say anything later? "

Abu and Conrad looked at each other, and Yang Cheng's analysis was straightforward, which directly blocked what they wanted to argue.

In fact, they do not look down on this project. It is just that Beihai Petroleum belongs to the category of traditional crude oil and has rushed into another camp. The unknown risks brought by them must consider whether they can afford it.